Some people have come to know car title loans as having unconscionable and iniquitous interest rates. There are many reviews, reports or articles that have given people the wrong impression about car title loans. Even though it cannot be denied that there are some car title loaning companies with such kinds of interest rates, not all loan companies are exercising such act. In fact, car title loans have become very helpful to people. These loans have offered them the chance to make the necessary payments, manage their current financial drawbacks and to meet their financial needs. Also, they have been recognized by the government.
To start with, car title loans are considered a secured loan because it requires a pledge. In obtaining such loans, a borrower must give the title of his or her car as collateral. While the title of the car will remain in possession of the lender until it has been paid off, the car will only be used as regularly for the amount of money to be acquired by the borrower. The amount of money to be received will be based on the car’s value. Upon determination of the value of the car and agreement on the money to be acquired, the borrower gets to keep his or her car. Borrowers can quickly get the money they borrowed as soon as they have been approved. Loan approvals may be done within an hour. Therefore, you can get hold of your money as quickly as possible.
Concerning the interest rate of car title loans, rates are based on local, state and federal laws. Local, State and Federal governments have the authority to control the interest rates. Due to this, it’s important to note that car title loaning companies are in strict adherence to these laws and regulations. They are aware of these situations. Therefore, it is necessary for people to choose the most reliable lending firm which would give them the sincere and best assistance.
Looking For Quick Cash?
Car title loans do not only offer you the money you need in an emergency, but are available to anyone irrespective of one’s credit history. It is easy and fast to apply online. It’s very simple and all you need to do is fill out some forms on the internet. In most cases, you can have the money within 48 hours. When you’ve a history of not paying your bills back, you become what is considered a risky investment to the lender. This is because it’s assumed you’ll follow the same mistakes of your past and you’re not likely to pay back the loan.
Not only does the traditional loans source make it harder for a person with bad credit to borrow money, but if they do find a bank or credit union that will give them money, it will end up costing more money in interest for them to be able to borrow money. This is so because lenders can balance the expected losses that are pre-determined due to your credit rating. Car title loans are more attractive to lenders because these are called secured loans. This means that the borrower puts a vehicle up as collateral which is an assurance that the loan will be paid back.
Lenders, with that assurance, will be able to lend you the money you need at a lower interest rate because you’re no longer seen as a risky investment. It is a situation where everybody wins. You get the money you need quickly, and they get peace of mind.